Lei to rebuild Jinshan: Tun-capital mobile internet 3.776 billion flow to dismantle

Issuance of debt 1.356 billion yuan, Jinshan software Hung heavily develop mobile internet and application software.

Jinshan Software July 3 issued a notice that will be issued in 2018 to expire 1.356 billion yuan convertible bonds, interest rate 3, Kingsoft software has applied to issue bonds in SGX, Morgan Stanley and JPMorgan Chase for the joint global Coordinator.

There is news that Jinshan Software CEO Zhanghongjiang has gone to Singapore to deal with related matters. Kingsoft Software related responsible to the reporter to correct, Zhanghongjiang to Singapore to participate in a Jinshan software project will, and hair bonds unrelated.

In addition to the financing of the 1.356 billion yuan, 2012 annual report shows that the end of the end, Jinshan software still has cash and cash equivalent of about 2.42 billion yuan, 2011 the same period of 1.93 billion yuan. Jinshan software Hand total Hung capital 3.776 billion yuan.

Jinshan funds used in two directions, one is to repay the bank loans, the second is the development of Kingsoft software existing business and expand the future of new business. The second direction is the focus, namely Jinshan software Hung more than 3 billion yuan to develop existing business and expand new business.

3.776 billion flow resolution

The announcement indicated that the bonds issued by Jinshan could be converted into shares at a preliminary exchange rate of HK $16.9363 per share (adjustable). This initial exchange price than Jinshan July 1 closing price premium of 25.27%.

The announcement shows: This issue of the debt can be converted to about 80.06 million shares of Jinshan, accounting for the issuance and conversion of the total share capital of 6.4%.

"This issuance is mainly used to repay short-term bank loans, general corporate uses and supplementary operating funds," the statement said. Jinshan repayment of short-term bank loans required funds of about 600 million yuan, the remaining funds still more than 3.1 billion yuan, will be used for "general corporate use and supplementary operating funds", that is, to support the development of the existing business of Jinshan software.

Jinshan Software existing business is divided into two aspects, one is the network game business, the second is the application software. The future business is mainly focused on mobile internet. In fact, 3 billion yuan should be used in two aspects, one is application software, the other is mobile internet.

Jinshan Software 2012 Annual report shows: 2012, the income is divided into three parts, entertainment software is about 851 million yuan, the application software is about 544 million yuan, other income is 15 million yuan. The entertainment software mainly refers to the network game business, the application software including WPS, security and other products revenue, most of them from government procurement.

The network game is Jinshan current main business, the network tour business tends to be gentle. The client-game market grew by 19.5% in size, compared with the golden age of more than 100% per cent, according to the 2012 online gaming market annual inventory released by the Analysys think-tank.

In addition, the network game market structure has been basically determined, in the field of online gaming, Jinshan revenue row eighth, the front seven are Tencent games, NetEase games, Sohu Games, Grand games, perfect games, Giants games, 360 games.

Jinshan is a software named company, the software is Jinshan gene, Jinshan application software revenue of about 544 million yuan, including Office software (mainly WPS software), Enterprise security, cloud security (including cloud storage) and other income. Government procurement and corporate procurement are the main sources of revenue for these applications.

Mobile Internet era, the application software on the smartphone on the outbreak of growth, Jinshan software applications in the mobile phone and software, including Kingsoft WPs, Jinshan back words, Kingsoft, Jinshan fast, Kingsoft Web site Daquan, Jinshan fast, Jin Shanyun, etc. more than 10 balance software. According to the Kingsoft program, there are some mobile Internet products to be launched this year.

In the overall planning of Jinshan, the game business development has slowed down, belong to the "defensive" business, and application software business, especially the mobile Internet application software is in the rapid development period, belonging to the "offensive" business, that is, vigorously put into the business.

Lei to rebuild Jinshan

April 2013, Jinshan Software Board chairman Lei spent 190 million Hong Kong dollars to buy Tencent held 2.5% of Jinshan shares, personal shareholding rose to 14.89%, Tencent shareholding ratio from 15.19% to 12.7%, Lei become the largest shareholder in Jinshan.

Since July 6, 2011, Lei back to the CEO of Jinshan, Lei began the process of rebuilding Jinshan. Become the first major shareholder of Jinshan, then represent the lei of the task of the success of the milestone: the past is the internal transformation, next, Jinshan task is the external reclamation.

Lei first thing to do is the enterprise internal MBO. The move began in January 2011, with 26 core employees, including the Golden Hill game CEO Zou, set up westgame to subscribe to the new "West Hill" 160 million shares at HK $1.1834 per share for a total value of about 189 million Hong Kong dollars, gaining a new "Xishan home" 20% stake, Jinshan Software enjoys the remaining 80%.

At present, Jinshan has completed the subsidiary of MBO in addition to the West Hill, there are Jinshan network, Office software, Jin Shanyun. In these companies, the management has a significant portion of the shares, ownership of the company. In addition to subsidiaries, there are also a number of business units to adopt similar models, such as Jinshan old staff Wang led PowerWord.

If these companies are well developed, they can be listed separately, and the founders will receive a corresponding return. At present, the most likely independent listing of the company has two, one is Fu and Xu Xian is responsible for the Jinshan network, and the second is the Zou responsible for the West Hill home. Alone as a company, West Hill is the eighth largest online gaming company, Jinshan Network is the third largest client company (the top two are Tencent, 360).

Lei The purpose of this is to make Kingsoft software responsible for each piece of business management to maintain entrepreneurial passion.

Network games, application software are the old line of Jinshan, internal restructuring, the shareholder structure straighten out, Lei next action is offensive. On this point, Lei early, 2011, Lei said the future Jinshan software will be a mobile internet company.

Kingsoft wps, Jinshan back words, PowerWord, Jinshan fast disk, Jinshan Web site Daquan, Jinshan fast disk and other applications are Jinshan in the PC era of products to the mobile Internet extension, this extension is considered Jinshan network is regarded as the advantage of Jinshan software.

Jinshan software In the future there is no clear outline, but has been recognized by the capital market: Lei before taking office, Jinshan shares to a minimum of HK $2.2, to July 4, Jinshan software shares amounted to HK $12.4, during which, over 13 Hong Kong dollars.

Another source said, Kingsoft software will be combined with a number of companies (including Tencent) investment Sogou company, in order to maintain the independence of Sogou: If the Sogou is Qihoo 360 investment, Chinese search engine market will become two strong hegemony, Qihoo 360 will become more powerful; if Sogou operates independently, the market will maintain the "Three Kingdoms kill" situation in a period of time. , can contain 360, also can contain Baidu.